Introduction to the Cryptocurrency

Introduction to the Cryptocurrency

Do you know about Bitcoin? Well, I’m sure you know. I know it too, and I also regret something about it. Well, my regret is not mining Bitcoin before 2010. Those years were easier to mine Bitcoin than just one Bitcoin, and we can stack it how much we want like a hoarder. It was cheap when we converted it into our currency in those years, but how about today? One Bitcoin now worth around $9000. That is what I regret. If I mined Bitcoin back then, I probably have a High-End PC to play AAA games in the highest settings now. The Cryptocurrency is still mysterious to me until now.

Introduction to the Cryptocurrency
Introduction to the Cryptocurrency
Definition of Cryptocurrency

Cryptocurrency is a digital currency that used to do the transaction virtually through the internet. It requires complex and complicated passwords to keep it safe.

Different from the conventional currency that we used every day to buy stuff because they are centralized, digital currencies are decentralized. There is no party that acts to become the third. All transactions are peer-to-peer. Which is from the sender to the receiver. However, all transactions through Cryptocurrencies are recorded and monitored in the system. Cryptocurrency miners are the ones who recorded them all, and they will receive commissions, which is in the form of digital currency that can be used as well.

Introduction to the Cryptocurrency
Introduction to the Cryptocurrency
Cryptocurrencies in the world

Well, Bitcoin is not the only digital currency that circulated through the digital world. There are more than a thousand of cryptocurrencies that circulated on the internet, such as Litecoin, Ethereum, Ripple, Monero, and many more.

Bitcoin is on the top list of the Cryptocurrency. The creator of Bitcoin only made 21 million Bitcoin according to the protocol he agreed to. Experts say that Bitcoin mining will not stop and will still run at least until the year 2140.

Advantages

There are several advantages of Cryptocurrencies. As I mentioned in the first paragraph, there are chances that the converted value can be high in the future, such as today’s Bitcoin that is worth $9000 for one Bitcoin. With blockchain technology, Cryptocurrency transactions are easy, safe, and fast. It could avoid counterfeit currency as well because blockchain can’t do two different transactions with the same currency. Also, personal information is safe. Unlike conventional banks, you don’t need to show your real identity during the transaction.

Deficiency

When advantages exist, then deficiencies also exist. First is the government. Not all countries legalized Cryptocurrencies, and we could get into the prison. It could do high volatility, a condition when a currency’s value went up and down drastically in a short time. Also, Cryptocurrencies are hard to predict, which have a potential of big loss. Forgetting the Wallet key could make a fatal mistake, especially in investment.

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